Estimation of Forwarding and Shipping Cost:
 |
| Fig: Shipping and forwarding cost calculation method |
SL No. | Parameters | Quantity & Cost |
01 | Order quantity | 10000pcs apparel |
02 | Total value | Rs. 1000000 |
03 | 1 carton box | 200 apparel |
04 | Carton box size | 60cm× 40cm× 30cm |
05 | Freight charge for shoppers | $40/m3 (1$= Rs. 45) |
06 | Terminal handling charges | Rs. 250/m3 |
07 | Documentation charges | Rs. 1000 |
08 | Transportation | Rs. 8000 |
09 | Port charges | Rs. 10000 |
10 | Custom expenses | Rs. 12000 |
11 | Insurance charges (If any) | Rs. 12000 |
12 | Agent commission | 0.2% of total value of the order |
13 | Service charge | Rs. 2000 |
Solution:
The below formula has to apply in apparel shipping and forwarding cost calculation method:
Apparel shipping and forwarding cost per apparel,
Total expenses related with shipping
= ………………………………………………….. ……….. (1)
Shipping quantity
Now,
Total carton box,
= (Order quantity/No. of apparel in each carton)
= (10000/20)
= 50
Again,
Carton box volume,
= (0.6m × 0.4m × 0.3m)
= 0.072m3
So,
Total volume stands at,
= (No. of carton box × Volume of carton box)
= (50 × 0.072)
= 3.6m3
All Shipping Expenses Calculation:
Freight cost,
= (Total volume × freight charge × Rs. 45)
= (3.6 × $40 × Rs. 45)
= Rs. 6480
Again,
Terminal handling charge,
= (Total volume × charge)
= (3.6 × Rs. 250)
= Rs. 900
Again,
Documentation charge – Rs. 1000
Transportation charge – Rs. 8000
Port charges – Rs. 10000
Custom expense – Rs. 12000
Insurance charge – Rs. 12000
Agent commission (0.2% of total value) – Rs. 2000
Service charge – Rs. 2000
So,
Total expense cost stands at,
= Rs. (6480 + 900+1000+8000+10000+12000+12000+2000+2000)
= Rs. 54380
Now,
From the equation-01, we get,
Apparel shipping and forwarding cost per apparel,
= (54380/10000)
= Rs. 5.45
